Economy

Inflation to accelerate to 12%, says Emefiele

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CBN Governor Godwin Emefile

Nigerian inflation rate will reach 12 per cent this year before moderating, Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele has projected.

Speaking at “BusinessDay Post-Election Economic Agenda Conference’’ on Thursday in Lagos, he noted that the apex bank would tinker its monetary policies in line with inflation trend.
The CBN Governor said the the country’s Gross Domestic Product (GDP) is expected to pick up in the first half of the year.
He assured that the apex bank will continue to ensure that the policy interest rate is set to balance the objectives of price stability with output stabilisation.
Acoording to him, the CBN will maintain its stable exchange rate over the next year, despite expected pressures from crude oil markets volatility.

He maintained that gross stability is expected in the foreign exchange market due projected increase in oil production and drop in import bill.

Emefiele  said has been able to reduce pressure on the the country’s foreign exchange market through the restriction of access to foreign exchange on 43 items, and increased lending to the agriculture and manufacturing sectors as another measure.

He stressed that need to significantly increase the country’s policy buffers, including fiscal measure, to increase its external reserve as the issues that led to the economic crisis between 2015 and 2017 were still lurking around.

The CBN maintained that were was need to urgently diversify Federal Government’s revenue structure in order to reduce dependence on direct proceeds from the sale of crude oil.

He also argued that access to cheap funds msu be provided to boost local production of priority goods in critical sectors of the economy in order to reduce reliance on foreign imports.

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